This guide reflects the rules for the tax year ending December 31, 2025.
It applies to self-employed individuals filing their 2025 tax return in 2026.
If you are self-employed in Canada, you may need to register for, collect, and remit GST/HST. This guide explains when registration is required, how to charge GST/HST, how to file returns, and how to claim Input Tax Credits (ITCs).
🧭 1. What Is GST/HST? #
GST (Goods and Services Tax) is a 5% federal tax.
HST (Harmonized Sales Tax) is a combined federal + provincial tax used in certain provinces.
HST provinces and rates (2025): #
| Province | HST Rate |
|---|---|
| Ontario | 13% |
| Nova Scotia | 15% |
| New Brunswick | 15% |
| Newfoundland & Labrador | 15% |
| Prince Edward Island | 15% |
All other provinces use GST 5% plus their own provincial sales tax (PST/QST).
📈 2. Do You Need to Register for GST/HST? #
You must register if:
✔ Your worldwide taxable revenues exceed $30,000 #
- In a single calendar quarter, or
- Over the last four consecutive quarters
This includes:
- Freelancing
- Contracting
- Online business
- Gig work (Uber, DoorDash, Instacart, etc.)
- Digital services
- Consulting
If you exceed $30,000: #
- You must register within 29 days
- You must charge GST/HST on all sales after crossing the threshold
- You must remit tax collected to CRA
🧾 3. Voluntary Registration #
You may register even if you earn less than $30,000.
Benefits:
- You can claim Input Tax Credits (ITCs)
- You appear more professional to clients
- You avoid hitting the threshold unexpectedly
Downside:
- You must charge GST/HST
- You must file returns regularly
💰 4. How to Charge GST/HST #
Once registered, you must:
- Charge GST/HST on all taxable sales
- Show your GST/HST number on invoices
- Track tax collected
- Remit it to CRA
Example (Ontario, 13% HST): #
Service fee: $1,000
HST: $1,000 × 0.13 = $130
Total invoice: $1,130
🧮 5. Input Tax Credits (ITCs) #
ITCs allow you to recover GST/HST paid on business expenses.
You can claim ITCs on:
- Office supplies
- Software subscriptions
- Equipment
- Tools
- Vehicle expenses (business portion)
- Home office expenses (business portion)
- Travel expenses
- Advertising
- Professional fees
Example: #
You paid $300 HST on business purchases.
You collected $1,000 HST from clients.
You remit:
\[ 1,000 - 300 = 700 \]You owe CRA $700.
📅 6. GST/HST Filing Frequency #
CRA assigns your filing frequency based on revenue:
| Revenue | Filing Frequency |
|---|---|
| Under $1.5M | Annual (default) |
| $1.5M–$6M | Quarterly |
| Over $6M | Monthly |
You can choose to file more frequently, but not less.
🧾 7. GST/HST Return Deadlines #
Annual filers #
- Return due: June 15
- Payment due: April 30
Quarterly filers #
- Due one month after the quarter ends
Monthly filers #
- Due one month after the month ends
🧮 8. Example: GST/HST Calculation #
You billed $50,000 in Ontario (13% HST).
You collected:
You paid $1,200 HST on business expenses.
You remit:
\[ 6,500 - 1,200 = 5,300 \]You owe CRA $5,300.
❓ 9. Frequently Asked Questions #
Do I need to charge GST/HST to U.S. clients? #
No — exports are zero-rated.
Do I charge GST/HST to clients in other provinces? #
Yes — you charge the client’s province rate.
